November 2013
Intermediate to advanced
208 pages
4h 42m
English
book
The Definitive Guide to Supply Chain Best Practices: Comprehensive Lessons and Cases in Effective SCM
by CSCMP, Robert Frankel
Content preview from The Definitive Guide to Supply Chain Best Practices: Comprehensive Lessons and Cases in Effective SCM
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9. Innovative Distribution Company: A Total Cost Approach to Understanding Supply Chain Risk
Dr. Ted Farris, University of North TexasDr. Ila Manuj, University of North Texas
Introduction
This case illustrates the use of the total cost of ownership concept to analyze two supply chains, one international and one domestic. Students must calculate economic order quantity and safety stock quantities, then combine purchase price, shipping costs, and inventory carrying costs to quantify the differences between the two supply chains.
The domestic versus international aspects of the case allow the instructor latitude in discussing:
1. Differences in labor rates driving outsourcing
2. Use of exchange rates
3. Contrast INCOTERMS versus free on board ...
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